NDAQ Chart With Bullish Indicator

I charted NDAQ after the markets closed on Wednesday, February 3, 2010 when it finished the day at $19.06.  After hanging out close to $18 for the intraday lows for a week NDAQ started climbing yesterday and broke through its 10 day moving average.  Today Goldman Sachs (GS) added NDAQ to its conviction buy list and NDAQ surged again.  This time it stopped at its 20 day moving average and closed up nicely for the day, but off its highs.

The biggest bullish indicator that seems to hold true on a regular basis for NDAQ is the Williams %R indicator for 14 and 28 day periods.  I’ve highlighted NDAQ in this space a couple of times in the past when this happens and today is another buying opportunity.  I’m already sitting on NDAQ February 20 naked puts and yesterday I bought some more shares outright in my IRA.  I think there’s plenty of upside left for NDAQ and see at least another $1.00 in it in the near term.  NDAQ is fairly volatile, but tends to trade in a range.  $18 is the bottom of that range and the top side has been shrinking, so I’m not sure how high it’ll go before taking a breather again.  Having GS pushing it could help get it out of its rut though.  I’ll be in for the ride for at least another 5% to the upside.